Thursday, September 29, 2022
HomeEntrepreneurAre Cryptocurrencies Becoming A Flight-To-Safety Play?

Are Cryptocurrencies Becoming A Flight-To-Safety Play?

This story originally appeared on Zacks

Bitcoin BTC, the cryptocurrency benchmark, has rallied 33% in the past week of trading, while the S&P 500 SPY dropped nearly 1%. This performance deviation is a new phenomenon for digital currencies, which until this past week had traded with the stock market.

– Zacks

The high correlation between stocks and cryptos alludes to the assumption that digital currencies are a “risk-on” asset, but Bitcoin’s risk profile may be shifting.

The week-long break out in this digital asset class was catalyzed by a vote of confidence from legendary investor George Soros, who is famous for making big money on currency investments. Soros’s Bitcoin investment combined with a lack of panic selling from current holders pushed Bitcoin past $55,000 for the first time in about 6 months.

The finicky rally chasers have seemingly all been shaken out of these digital assets, and only true believers willing to stomach considerable short-term volatility are left (or those who forgot their password). I see this is as an overall bullish sign for this nascent market.

I remain skeptical about its utilization as an actually medium of exchange. The only bet I would make in this ambiguous and seemingly baseless market is on Ethereum, which has actually use cases with smart contracts and decentralized applications. Still, there is no way for me to give it any sort of fundamental value.

Zacks’ Top Picks to Cash in on Artificial Intelligence

This world-changing technology is projected to generate $100s of billions by 2025. From self-driving cars to consumer data analysis, people are relying on machines more than we ever have before. Now is the time to capitalize on the 4th Industrial Revolution. Zacks’ urgent special report reveals 6 AI picks investors need to know about today.

See 6 Artificial Intelligence Stocks With Extreme Upside Potential>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
SPDR S&P 500 ETF (SPY): ETF Research Reports
To read this article on click here.
Zacks Investment Research

Source link



Please enter your comment!
Please enter your name here

Most Popular